Safaricom has announced plans to provide 100 per cent 4G network coverage across the country by end of this year as part of its growth strategy focused on being the technology partner of choice.
The giant telco has embarked on its next phase of growth that will be driven by a vision to become a purpose-led technology company by 2025.
Safaricom CEO Peter Ndegwa made the announcement as he released financial results for the half year ended September 30, 2020, which saw net profit decrease by 6 per cent to Sh33.07 billion with service revenue hitting Sh 118.41 billion.
“Our business has proved to be resilient despite tough operating conditions. There is no doubt that Covid-19 has dealt a huge blow to many people not just in Kenya, but across the globe,” Ndegwa said.
“This has been a tough period for businesses—small and large alike—and our customers. We are committed to walking through this journey together.”
Despite a 4.8 per cent drop in Service Revenue, Safaricom increased capital expenditure by 25.5 per cent to Sh22.75 billion.
Voice service revenue dropped by 6.5 per cent to Sh40.19 billion while M-Pesa revenue dropped by 14.5 per cent to sh35.89bn.
“As we go into our third decade as an organization, we aim to create a technology business by developing new digital ecosystems in health, agriculture and education sectors as we aim to provide digital solutions for our customers,” Ndegwa said.
Board chairman Michael Joseph said they are encouraged by the positive trajectory witnessed going into the second quarter of our financial year.
KEY HIGHLIGHTS
- 10.5 per cent decline in EBIT (Earnings before Interest and Tax) to Sh 44.97 billion with an EBIT margin of 36.3 per cent, down 2.5 ppts YoY.
- Net Income reduced by 6.0 per cent to Sh 33.07 billion.
- Free Cash Flow down 36.8 per cent to Sh 23.60 billion.
- Service revenue contracted by 4.8 per cent to Sh 118.41 billion.
- Voice service (outgoing) revenue reduced by 6.5 per cent to Sh 40.19 billion.
- M-Pesa revenue dropped by 14.5 per cent to Sh 35.89bn.
- Mobile data revenue increased by 14.1 per cent to Sh 22.23 billion.
- Messaging revenue declined by 6.9 per cent to Sh 7.19 billion.
- Total one-month active customer base increased by 10.2 per cent to 30.31 million.
- One month active M-Pesa customers increased by 13.5 per cent to 26.79 million.
- One month active mobile data customers increased by 11.6 per cent to 22.91 million.